ITC - Quarterly Statement of Standalone and Consolidated Financial Results

Statement of Unaudited Standalone Financial Results for the Quarter and Six Months ended 30th September, 2020

Particulars			3 Months ended 30.09.2020	Corresponding 3 Months ended 30.09.2019	Preceding 3 Months ended 30.06.2020	6 Months ended 30.09.2020	6 Months ended 30.09.2019	Twelve Months ended 31.03.2020
(Rs. in Crores)
			(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
Gross Revenue from sale of products and services		(i)	11891.91	11750.16	9435.61	21327.52	23111.51	46323.72
Other operating revenue		(ii)	84.84	121.31	66.14	150.98	262.78	483.62
REVENUE FROM OPERATIONS[(i)+(ii)]		1	11976.75	11871.47	9501.75	21478.50	23374.29	46807.34
OTHER INCOME		2	609.95	654.33	896.82	1506.77	1274.50	3013.66
TOTAL INCOME (1+2)		3	12586.70	12525.80	10398.57	22985.27	24648.79	49821.00
EXPENSES
a)	Cost of materials consumed		3467.25	3408.42	3048.44	6515.69	6506.71	13121.76
b)	Purchases of stock-in-trade		1149.93	742.32	1676.61	2826.54	2558.55	4289.71
c)	Changes in inventories of finished goods, stock-in-trade, work-in-progress and intermediates		119.77	330.98	(778.13)	(658.36)	(443.68)	(176.34)
d)	Excise duty		793.67	212.14	590.43	1384.10	402.51	1187.64
e)	Employee benefits expense		661.03	632.26	696.92	1357.95	1322.57	2658.21
f)	Finance costs		13.76	13.33	16.79	30.55	28.55	55.72
g)	Depreciation and amortization expense		382.50	395.67	398.18	780.68	754.56	1563.27
h)	Other expenses		1724.47	1982.98	1620.90	3345.37	3899.58	7822.11
TOTAL EXPENSES		4	8312.38	7718.10	7270.14	15582.52	15029.35	30522.08
PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX (3-4)		5	4274.32	4807.70	3128.43	7402.75	9619.44	19298.92
EXCEPTIONAL ITEMS		6	-	-	-	-	-	(132.11)
PROFIT BEFORE TAX (5+6)		7	4274.32	4807.70	3128.43	7402.75	9619.44	19166.81
TAX EXPENSE		8	1041.92	784.60	785.67	1827.59	2422.40	4030.76
a)	Current Tax		987.64	950.76	767.95	1755.59	2514.14	4441.97
b)	Deferred Tax		54.28	(166.16)	17.72	72.00	(91.74)	(411.21)
PROFIT FOR THE PERIOD (7-8)		9	3232.40	4023.10	2342.76	5575.16	7197.04	15136.05
OTHER COMPREHENSIVE INCOME		10	161.62	(43.37)	(5.73)	155.89	(256.38)	(1381.81)
A (i)	Items that will not be reclassified to profit or loss		143.51	(34.91)	(17.83)	125.68	(253.48)	(1365.32)
(ii)	Income tax relating to items that will not be reclassified to profit or loss		(0.33)	2.27	0.97	0.64	4.50	9.62
B (i)	Items that will be reclassified to profit or loss		24.64	(15.46)	14.87	39.51	(10.34)	(36.24)
(ii)	Income tax relating to items that will be reclassified to profit or loss		(6.20)	4.73	(3.74)	(9.94)	2.94	10.13
TOTAL COMPREHENSIVE INCOME (9+10)		11	3394.02	3979.73	2337.03	5731.05	6940.66	13754.24
PAID UP EQUITY SHARE CAPITAL		12	1230.50	1228.65	1229.22	1230.50	1228.65	1229.22
(Ordinary Shares of Re. 1/- each)
RESERVES EXCLUDING REVALUATION RESERVES		13						62799.94
EARNINGS PER SHARE (of Re. 1/- each) (not annualised):		14
(a)	Basic (Rs.)		2.62	3.28	1.91	4.53	5.87	12.33
(b)	Diluted (Rs.)		2.62	3.27	1.91	4.53	5.84	12.31

Notes :

1	The Unaudited Standalone Financial Results, Segment Results, Balance Sheet and Cash Flow Statement were reviewed by the Audit Committee and approved by the Board of Directors of the Company at the meeting held on 6th November, 2020.
2	The continuing significant brand building costs covering a range of personal care and branded packaged food products are reflected under 'Other expenses' stated above and in Segment Results under 'FMCG-Others'.
3	During the quarter ended 30th September, 2020, 1,28,05,310 Ordinary Shares of Re. 1/- each were issued and allotted under the Company’s Employee Stock Option Schemes. Consequently, the issued and paid-up Share Capital of the Company as on 30th September, 2020 stands increased to Rs. 1230,50,36,551/-.
4	The Company, on 27th July, 2020, acquired 100% of the equity share capital of Sunrise Foods Private Limited (Sunrise). Consequently, Sunrise and its two wholly owned subsidiaries viz., Hobbits International Foods Private Limited and Sunrise Sheetgrah Private Limited, became wholly owned subsidiaries of the Company with effect from the aforesaid date. Further, the Board of Directors of the Company at the meeting held on 4th September, 2020 approved the amalgamation of Sunrise and its subsidiaries with the Company and the related Schemes of amalgamation. The Schemes, which are subject to approvals as necessary, will take effect from 27th July, 2020, being the appointed date; hence, the Schemes have not been given effect to in these results.
5	The Company, on 29th July, 2020, subscribed to the initial share capital of ITC IndiVision Limited (IIVL) of Rs. 1 crore, consequent to which IIVL became a wholly owned subsidiary of the Company.
6	The Company on 17th September, 2020 acquired, in the second tranche, 1964 Compulsorily Convertible Preference Shares of Rs. 10/- each of Delectable Technologies Private Limited (Delectable), consequent to which the Company’s shareholding in Delectable aggregated 20.06% of its share capital on a fully diluted basis.
7	The Company has considered the possible effects that may arise out of the still unfolding COVID-19 pandemic on the carrying amounts of property, plant & equipment, intangible assets, investments, inventories, trade receivables, etc. For this purpose, the Company has considered internal and external sources of information up to the date of approval of the Standalone Financial Results including credit reports and related information, economic forecasts, market value of certain investments etc. Based on the current estimates, the Company does not expect any significant impact on such carrying values. The impact of COVID-19 on the Company's financial statements may differ from that estimated as at the date of approval of Standalone Financial Results.
8	This statement is as per Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Limited Review
The Limited Review, as required under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, has been completed and the related Report does not have any impact on the above 'Results and Notes' for the Quarter and Six Months ended 30th September, 2020 which needs to be explained.

ITC LIMITED
Unaudited Segment-wise Revenue, Results, Assets and Liabilities
for the Quarter and six months ended 30th September, 2020

				STANDALONE
(Rs. in Crores)
Particulars				3 Months ended 30.09.2020	Corresponding 3 Months ended 30.09.2019	Preceding 3 Months ended 30.06.2020	6 Months ended 30.09.2020	6 Months ended 30.09.2019	Twelve Months ended 31.03.2020
				(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
1.	Segment Revenue
	a)	FMCG	- Cigarettes	5121.30	5326.83	3853.79	8975.09	10760.23	21201.74
			- Others	3794.95	3288.31	3374.57	7169.52	6348.36	12844.23
		Total FMCG		8916.25	8615.14	7228.36	16144.61	17108.59	34045.97
	b)	Hotels		81.96	426.63	22.58	104.54	819.22	1837.28
	c)	Agri Business		2985.26	2647.52	3746.30	6731.56	6258.75	10240.72
	d)	Paperboards, Paper & Packaging		1458.67	1565.42	1026.44	2485.11	3092.95	6107.18
		Total		13442.14	13254.71	12023.68	25465.82	27279.51	52231.15
	Less : Inter-segment revenue			1550.23	1504.55	2588.07	4138.30	4168.00	5907.43
Gross Revenue from sale of products and services				11891.91	11750.16	9435.61	21327.52	23111.51	46323.72
2.	Segment Results
	a)	FMCG	- Cigarettes	3244.78	3844.45	2356.38	5601.16	7693.58	14852.55
			- Others [Note (i)]	252.68	90.46	125.41	378.09	168.48	423.05
		Total FMCG		3497.46	3934.91	2481.79	5979.25	7862.06	15275.60
	b)	Hotels		(184.90)	17.43	(242.58)	(427.48)	27.82	157.75
	c)	Agri Business		256.06	249.42	178.73	434.79	452.37	788.92
	d)	Paperboards, Paper & Packaging		330.28	355.91	160.12	490.40	685.67	1305.33
		Total		3898.90	4557.67	2578.06	6476.96	9027.92	17527.60
	Less :	i)	Finance Costs	13.76	13.33	16.79	30.55	28.55	55.72
		ii)	Other un-allocable (income) net of un-allocable expenditure [Note (ii)]	(389.18)	(263.36)	(567.16)	(956.34)	(620.07)	(1827.04)
		iii)	Exceptional Items	-	-	-	-	-	132.11
Profit Before Tax				4274.32	4807.70	3128.43	7402.75	9619.44	19166.81
3.	Segment Assets
	a)	FMCG	- Cigarettes	7293.64	8405.01	6736.71	7293.64	8405.01	6903.91
			- Others	10320.67	9568.16	10209.59	10320.67	9568.16	8694.53
		Total FMCG		17614.31	17973.17	16946.30	17614.31	17973.17	15598.44
	b)	Hotels		6537.10	6510.03	6577.62	6537.10	6510.03	6646.08
	c)	Agri Business		3656.28	3873.39	4304.84	3656.28	3873.39	4030.59
	d)	Paperboards, Paper & Packaging		7259.93	6925.76	7073.03	7259.93	6925.76	6823.85
		Total		35067.62	35282.35	34901.79	35067.62	35282.35	33098.96
		Unallocated Corporate Assets		35627.08	33947.44	44298.77	35627.08	33947.44	42136.40
Total Assets				70694.70	69229.79	79200.56	70694.70	69229.79	75235.36
4.	Segment Liabilities
	a)	FMCG	- Cigarettes	4172.61	4650.75	4701.65	4172.61	4650.75	3991.11
			- Others	2464.18	2238.88	2559.08	2464.18	2238.88	2133.61
		Total FMCG		6636.79	6889.63	7260.73	6636.79	6889.63	6124.72
	b)	Hotels		772.35	911.55	812.57	772.35	911.55	858.06
	c)	Agri Business		980.07	816.96	1175.76	980.07	816.96	1098.29
	d)	Paperboards, Paper & Packaging		968.49	844.94	930.03	968.49	844.94	764.73
		Total		9357.70	9463.08	10179.09	9357.70	9463.08	8845.80
		Unallocated Corporate Liabilities		3815.88	2711.01	2619.93	3815.88	2711.01	2360.40
Total Liabilities				13173.58	12174.09	12799.02	13173.58	12174.09	11206.20

Note (i): In respect of FMCG-Others segment, earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter and six months ended 30.09.2020 is Rs. 366.40 Crores and Rs. 623.74 Crores respectively (quarter ended 30.09.2019 - Rs. 221.02 Crores; quarter ended 30.06.2020 - Rs. 257.34 Crores; six months ended 30.09.2019 - Rs. 401.71 Crores and twelve months ended 31.03.2020 - Rs. 914.00 Crores).
Note (ii): As stock options and stock appreciation linked reward units are granted under the ITC Employee Stock Option Schemes (ITC ESOS) and ITC Employee Cash Settled Stock Appreciation Linked Reward Plan (ITC ESARP), respectively, to align the interests of employees with those of shareholders and also to attract and retain talent for the enterprise as a whole, the charge thereof do not form part of the segment performance reviewed by the Corporate Management Committee.

ITC Limited
(Rs. in Crores)
Balance Sheet			STANDALONE
Particulars			As at current half year end 30.09.2020	As at previous year end 31.03.2020
			(Unaudited)	(Audited)
A	ASSETS
1	Non-current assets
	(a)	Property, Plant and Equipment	18532.30	18932.57
	(b)	Capital work-in-progress	2930.85	2776.31
	(c)	Investment Property	382.00	385.36
	(d)	Intangible assets	512.42	519.45
	(e)	Intangible assets under development	3.91	3.89
	(f)	Right of Use Assets	669.57	680.17
	(g)	Financial Assets
		(i) Investments	14448.11	13455.59
		(ii) Loans	2.77	3.31
		(iii) Others	76.34	607.09
	(h)	Other non-current assets	1482.50	1364.71
		Non-current assets	39040.77	38728.45
2	Current assets
	(a)	Inventories	9926.41	8038.07
	(b)	Financial Assets
		(i) Investments	13904.58	17175.02
		(ii) Trade receivables	1919.31	2092.00
		(iii) Cash and cash equivalents	241.91	561.84
		(iv) Other Bank Balances	2699.31	6281.43
		(v) Loans	3.57	4.87
		(vi) Others	1758.28	1505.94
	(c)	Other current assets	1200.56	847.74
		Current assets	31653.93	36506.91
		Total Assets	70694.70	75235.36
B	EQUITY AND LIABILITIES
	Equity
	(a)	Equity Share capital	1230.50	1229.22
	(b)	Other Equity	56290.62	62799.94
		Equity	57521.12	64029.16
	LIABILITIES
1	Non-current liabilities
	(a)	Financial Liabilities
		(i) Borrowings	5.63	5.63
		(ii) Lease liabilities	274.94	259.25
		(iii) Other financial liabilities	166.40	90.47
	(b)	Provisions	151.78	143.79
	(c)	Deferred tax liabilities (Net)	1699.30	1617.65
		Non-current liabilities	2298.05	2116.79
2	Current liabilities
	(a)	Financial Liabilities
		(i) Borrowings	10.00	-
		(ii) Trade payables
		Total outstanding dues of micro enterprises and small enterprises	59.26	34.67
		Total outstanding dues of creditors other than micro enterprises and small enterprises	3989.49	3412.07
		(iii) Lease liabilities	46.38	64.87
		(iv) Other financial liabilities	1115.91	1147.24
	(b)	Other current liabilities	5124.40	4175.91
	(c)	Provisions	143.06	117.94
	(d)	Current Tax Liabilities (Net)	387.03	136.71
		Current liabilities	10875.53	9089.41
		Total Equity and Liabilities	70694.70	75235.36

ITC Limited
Standalone Cash Flow Statement for the half year ended 30th September, 2020
(Rs. in Crores)
				For the half year ended 30th September, 2020		For the half year ended 30th September, 2019
A.	Cash Flow from Operating Activities
	PROFIT BEFORE TAX			7402.75		9619.44
	ADJUSTMENTS FOR :
		Depreciation and amortization expense	780.68		754.56
		Share based payments to employees	13.74		60.53
		Finance costs	30.55		28.55
		Interest Income	(641.16)		(725.65)
		Dividend Income	(60.78)		(69.26)
		Loss on sale of property, plant and equipment - Net	36.68		30.58
		Doubtful and bad debts	14.61		7.72
		Doubtful and bad advances, loans and deposits	32.58		(0.67)
		Net (gain) / loss arising on investments mandatorily measured at fair value through profit or loss	(732.36)		(446.20)
		Foreign currency translations and transactions - Net	(2.42)	(527.88)	(3.32)	(363.16)
	OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES			6874.87		9256.28
	ADJUSTMENTS FOR :
		Trade receivables, advances and other assets	(215.94)		1.62
		Inventories	(1888.34)		(1353.68)
		Trade payables, other liabilities and provisions	627.89	(1476.39)	(71.01)	(1423.07)
	CASH GENERATED FROM OPERATIONS			5398.48		7833.21
		Income tax paid		(1505.26)		(2514.34)
	NET CASH FROM OPERATING ACTIVITIES			3893.22		5318.87
B.	Cash Flow from Investing Activities
		Purchase of property, plant and equipment, Intangibles etc.	(795.59)		(1125.54)
		Sale of property, plant and equipment	3.23		20.39
		Purchase of current investments	(28697.74)		(39988.20)
		Sale/redemption of current investments	32868.84		39625.31
		Investment in subsidiaries	(2341.83)		(104.93)
		Investment in associate	(1.87)		-
		Purchase of non-current investments	(0.45)		(774.11)
		Redemption proceeds of non-current investments	1480.10		1767.63
		Dividend Income	0.56		9.04
		Interest received	708.83		744.73
		Investment in bank deposits (original maturity more than 3 months)	(2650.53)		(883.48)
		Redemption / maturity of bank deposits (original maturity more than 3 months)	6258.37		3185.60
		Investment in deposit with housing finance companies	(39.22)		(548.49)
		Redemption / maturity of deposit with housing finance companies	300.00		699.15
		Loans given	(0.67)		(0.93)
		Loans realised	2.51		3.19
	NET CASH FROM INVESTING ACTIVITIES			7094.54		2629.36
C.	Cash Flow from Financing Activities
		Proceeds from issue of share capital	214.58		517.95
		Proceeds from current borrowings	10.00		-
		Payment of lease liabilities	(24.50)		(20.54)
		Interest paid	(25.99)		(24.33)
		Net increase in statutory restricted accounts balances	25.72		3.19
		Dividend paid	(11521.01)		(7048.71)
		Dividend distribution tax (paid) / refund received	13.99		(1373.52)
	NET CASH USED IN FINANCING ACTIVITIES			(11307.21)		(7945.96)
	NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS			(319.45)		2.27
	OPENING CASH AND CASH EQUIVALENTS			561.35		162.75
	CLOSING CASH AND CASH EQUIVALENTS			241.90		165.02
Note:
	CASH AND CASH EQUIVALENTS :
		Cash and Cash Equivalents as above		241.90		165.02
		Unrealised gain / (loss) on foreign currency cash and cash equivalents		0.01		(0.01)
		Cash and Cash Equivalents		241.91		165.01

Notes :

(1)

The Company's corporate strategy aims at creating multiple drivers of growth anchored on its core competencies. The Company is currently focused on four business groups : FMCG, Hotels, Paperboards, Paper & Packaging and Agri Business. The Company's organisational structure and governance processes are designed to support effective management of multiple businesses while retaining focus on each one of them.

The Operating Segments have been reported in a manner consistent with the internal reporting provided to the Corporate Management Committee, which is the Chief Operating Decision Maker.

(2)

The business groups comprise the following :

FMCG

Cigarettes

Cigarettes, Cigars etc.

Others

Branded Packaged Foods Businesses (Staples & Meals; Snacks; Dairy & Beverages; Biscuits & Cakes; Chocolates, Coffee & Confectionery); Education and Stationery Products; Personal Care Products; Safety Matches and Agarbattis; Apparel.

Hotels

Hoteliering.

Paperboards, Paper & Packaging

Paperboards, Paper including Specialty Paper & Packaging including Flexibles.

Agri Business

Agri commodities such as soya, spices, coffee and leaf tobacco.

(3)

Segment results of 'FMCG : Others' are after considering significant business development, brand building and gestation costs of Branded Packaged Foods businesses and Personal Care Products business.

(4)

Figures for the corresponding previous periods are re-arranged, wherever necessary, to conform to the figures of the current period.

Registered Office :
Virginia House, 37 J.L. Nehru Road,
Kolkata 700 071, India

Dated : 6th November, 2020
Place : Kolkata, India

For and on behalf of the Board

Executive Director

Chairman & Managing Director

Website: www.itcportal.com | E-mail: enduringvalue@itc.in | Phone: +91-33-2288 9371 | Fax: +91-33-2288 0655 | CIN : L16005WB1910PLC001985

Click here for Commentary on Performance

Financial Results June 2020 - Standalone | Consolidated
Financial Results March 2020 - Standalone | Consolidated
Financial Results December 2019 - Standalone | Consolidated

Quarterly Results

Statement of Unaudited Standalone Financial Results for the Quarter and Six Months ended 30th September, 2020

Media Statement - Financial Results for the Quarter ended 30th September, 2020

ITC Corporate Presentation Q2 FY 20-21

ITC Adjudged 'Best Governed Company' By ICSI

Caution Notice